Preserving Lawful Utilization of Services for Veterans Act of 2023 or the PLUS for Veterans Act of 2023
This bill modifies provisions related to agents and attorneys who represent veterans in Department of Affairs (VA) benefit claims.
The VA must determine whether to recognize an individual as an agent or attorney for purposes of VA benefit claims within 90 days of receiving an application from such an individual. If the VA cannot verify whether the agent or attorney meets its qualifications and standards before the end of the 90 days, the VA must recognize the agent or attorney. If the VA determines after the 90-day period that such an agent or attorney does not meet the VA's qualifications and standards, the VA may suspend the individual without regard to notice and hearing procedures.
The VA may not refuse to recognize an agent or attorney solely because the agent or attorney charges a fee for services rendered in the preparation, presentation, or prosecution of a claim. Additionally, the bill addresses and establishes the circumstances under which fees may be charged for the preparation, presentation, or prosecution of a claim for VA benefits.
Finally, the bill imposes criminal penalties on individuals for directly or indirectly soliciting, contracting for, charging, or receiving any unauthorized fee or compensation with respect to the preparation, presentation, or prosecution of any claim for VA benefits. The commission or attempted commission of such offenses is punishable by a fine, imprisonment for up to one year, or both.
[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1822 Introduced in House (IH)]
<DOC>
118th CONGRESS
1st Session
H. R. 1822
To amend title 38, United States Code, to improve the review of claims
for benefits under laws administered by the Secretary of Veterans
Affairs.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 28, 2023
Mr. Bergman (for himself and Ms. Mace) introduced the following bill;
which was referred to the Committee on Veterans' Affairs
_______________________________________________________________________
A BILL
To amend title 38, United States Code, to improve the review of claims
for benefits under laws administered by the Secretary of Veterans
Affairs.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Preserving Lawful Utilization of
Services for Veterans Act of 2023'' or the ``PLUS for Veterans Act of
2023''.
SEC. 2. CLARIFICATION OF PREPARATION, PRESENTATION, OR PROSECUTION OF A
CLAIM UNDER A LAW ADMINISTERED BY SECRETARY OF VETERANS
AFFAIRS.
Section 5901 of title 38, United States Code, is amended--
(1) by inserting ``(a) In General.--'' before ``Except'';
and
(2) by adding at the end the following new subsection:
``(b) Exclusion.--The administration of a medical examination, or
the writing of a report based on such examination, described in section
5125 of this title, does not constitute the preparation, presentation,
or prosecution of a claim described in subsection (a).''.
SEC. 3. AGENTS AND ATTORNEYS IN CLAIMS UNDER LAWS ADMINISTERED BY
SECRETARY OF VETERANS AFFAIRS: RECOGNITION; SUSPENSION.
Section 5904 of title 38, United States Code, is amended--
(1) in paragraph (1) of subsection (a)--
(A) by inserting ``(A)'' before ``Except''; and
(B) by adding at the end the following new
subparagraphs:
``(B) The Secretary shall determine whether to recognize under
subparagraph (A) an agent or attorney who applies for such recognition
not later than 90 days after the Secretary receives such application.
If the Secretary cannot verify whether the agent or attorney meets the
qualifications and standards prescribed under paragraph (2) before the
end of such 90 days, the Secretary shall recognize the agent or
attorney under such subparagraph.
``(C) The Secretary may not refuse to recognize under subparagraph
(A) an agent or attorney solely on the basis that such agent or
attorney charges a claimant a fee for services rendered in the
preparation, presentation, or prosecution of a claim.
``(D) The Secretary may suspend under subsection (b) an agent or
attorney described in subparagraph (D) without regard to the notice and
opportunity for a hearing under such subsection.
``(E) An agent or attorney described in this subparagraph is an
agent or attorney--
``(i) recognized pursuant to the second sentence of
subparagraph (B); and
``(ii) whom the Secretary determines, after the 90-day
period described in such subparagraph, does not meet the
qualifications and standards prescribed under paragraph (2).'';
and
(2) in subsection (b)--
(A) by redesignating paragraphs (1) through (9) as
subparagraphs (A) through (I), respectively;
(B) in the matter preceding subparagraph (A), as
redesignated, by inserting ``(1)'' before ``The
Secretary''; and
(C) by adding at the end the following new
paragraph:
``(2) Not later than one year after the date of the enactment of
the Preserving Lawful Utilization of Services for Veterans Act of 2023
and annually thereafter, the Secretary shall submit to the Committees
on Veterans' Affairs of the Senate and House of Representatives a
report regarding the number of individuals suspended under this
subsection or denied recognition under subsection (a), disaggregated by
the reasons for such suspension or denial and whether the individual
is--
``(A) a representative of an organization recognized under
section 5902 of this title;
``(B) an agent; or
``(C) an attorney.''.
SEC. 4. FEES ALLOWABLE FOR REPRESENTATION OF VETERANS FOR CLAIMS UNDER
LAWS ADMINISTERED BY SECRETARY OF VETERANS AFFAIRS.
(a) Fees.--Section 5904 of title 38, United States Code, as amended
by section 3, is further amended--
(1) in subsection (a)(5), by striking ``preparation,
presentation, and prosecution of a claim before the
Department'' and inserting ``course of representation described
in subsection (c)(2)'';
(2) in subsection (c)--
(A) in the heading, by inserting ``Flat Fee
Agreements.--'' after ``(c)'';
(B) by amending paragraph (1) to read as follows:
``(1)(A) In a case other than a case described in paragraph (2), a
fee agreement between a claimant and an agent or attorney, with respect
to the preparation, presentation, or prosecution of a claim under a law
administered by the Secretary, shall be a fee agreement under--
``(i) this paragraph, using a standard agreement form
prescribed by the Secretary;
``(ii) subsection (d); or
``(iii) subsection (e).
``(B) A fee agreement under this paragraph is one under which the
total amount payable by the claimant to the agent or attorney with
respect to the claim--
``(i) may not exceed $12,500 (as adjusted from time to time
under subparagraph (C)); and
``(ii) is contingent on whether the claim is resolved in a
manner favorable to the claimant.
``(C) Effective on October 1 of each year (beginning in the first
fiscal year after the date of the enactment of the Preserving Lawful
Utilization of Services for Veterans Act of 2023), the Secretary shall
increase the dollar amount in effect under clause (i) of subparagraph
(B) by a percentage equal to the percentage by which the Consumer Price
Index for all urban consumers (U.S. city average) increased during the
12-month period ending with the last month for which Consumer Price
Index data is available. In the event that such Consumer Price Index
does not increase during such period, the Secretary shall maintain the
dollar amount in effect under such clause during the previous fiscal
year.
``(D) The limitation under subparagraph (B)(i) does not apply to
any fee charged, allowed, or paid for services provided with respect to
proceedings before a court.
``(E) For purposes of subparagraph (B)(ii), a claim shall be
considered to have been resolved in a manner favorable to the claimant
if all or any part of the relief sought is granted.
``(F) The form prescribed by the Secretary under subparagraph
(A)(i) shall include the following notifications to the claimant:
``(i) That organizations recognized under section 5902 of
this title furnish services concerning claims under laws
administered by the Secretary, at no cost to claimants.
``(ii) That the claimant may select a private physician for
a medical examination described in section 5125 of this title
regarding the claim.
``(iii) That such agent or attorney may not refer the
claimant to a private physician described in clause (ii) with
whom the agent or attorney has a business relationship
regarding the claim.'';
(C) in paragraph (2), by striking ``referred to in
paragraph (1) of this subsection'' and inserting
``regarding a claim under a law administered by the
Secretary'';
(D) in paragraph (3)(A), by striking ``paragraph
(2)'' and inserting ``paragraph (1) or (2)''; and
(E) by striking paragraph (4); and
(3) by adding at the end the following new subsection (e):
``(e) Payment of Fees Out of an Award or Increased Award.--(1) When
a claimant and an agent or attorney have entered into a fee agreement
described in paragraph (2), the total fee payable to the agent or
attorney (including all ancillary fees) may not exceed the amount that
is equal to the product of five and the amount of the monthly increase
of benefits awarded on the basis of the claim.
``(2) A fee agreement referred to in paragraph (1) is one under
which the total amount of the fee payable to the agent or attorney--
``(A) is to be paid to the agent or attorney by the
claimant, after commencement of the monthly period of payment
of monetary benefits based on an award or increased award (as
defined in section 5111(d) of this title); and
``(B) is contingent on whether the matter is resolved in a
manner favorable to the claimant.
``(3) For the purposes of this subsection, a claim shall be
considered to have been resolved in a manner favorable to the claimant
if all or any part of the relief sought is granted.''.
(b) Regulations.--Not later than 180 days after the date of the
enactment of this Act, the Secretary shall prescribe regulations to
carry out the amendments made by this section.
SEC. 5. REINSTATEMENT OF PENALTIES FOR CHARGING VETERANS UNAUTHORIZED
FEES RELATING TO CLAIMS UNDER LAWS ADMINISTERED BY THE
SECRETARY OF VETERANS AFFAIRS.
(a) In General.--Section 5905 of title 38, United States Code, is
amended--
(1) in the section heading, by striking ``Penalty'' and
inserting ``Penalties'';
(2) by inserting ``(a) Withholding of Benefits.--'' before
``Whoever''; and
(3) by adding at the end the following new subsection:
``(b) Charging of Unauthorized Fees.--Except as provided in
sections 5904 or 1984 of this title, whoever directly or indirectly
solicits, contracts for, charges, or receives, or attempts to solicit,
contract for, charge, or receive, any fee or compensation with respect
to the preparation, presentation, or prosecution of any claim for
benefits under the laws administered by the Secretary shall be fined as
provided in title 18, or imprisoned not more than one year, or both.''.
(b) Clerical Amendment.--The table of sections at the beginning of
chapter 59 of such title is amended by striking the item relating to
section 5905 and inserting the following new item:
``5905. Penalties for certain acts.''.
(c) Effective Date.--The amendments made by this section shall take
effect one year after the date of the enactment of this Act.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Veterans' Affairs.
Referred to the Subcommittee on Disability Assistance and Memorial Affairs.
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